Economic impact of wind energy technology adoption in China's renewable power markets: Implications for energy security and financial development

The fast development of renewable energy technology has transformed the worldwide power systems, where wind energy has become a national component of sustainable development. In China, which is the largest energy consumer in the world, there is a need to integrate wind power to achieve carbon neutrality, energy diversification, and the stability of the economy. This paper explores the economic implications of the implementation of wind energy technology in China in the period between 2017 and 2024, considering how it will affect renewable energy markets, energy security and financial development. The findings, according to the Common Correlated Effects Mean Group (CCEMG) and Panel Granger Causality, demonstrate that an increase in foreign direct investment (FDI) and green technical innovation (GRTI) by 1 % increases financial development by approximately 0.028 and 0.40, respectively. Conversely, natural resources dependence and geopolitical tensions lower investment inflows by 0.013 %–0.016. This indicates that the appeal to resources and political insecurity has a long-term impact on sustainable finance. The report concludes that to lower the risk, green finance and international cooperation a key measures to make the regulations transparent, ensure the long-term energy security of the Chinese markets, and stability of the financial system in these markets.